In the wake of this new economic reality the government resources are focused towards internal security, which private security agencies can serve as a viable alternative source to traditional police who perform security functions. Hence, PSARA License is necessarily required by the person before starting a private security business in India.
The PSARA license refers to the "Private Security Agencies Regulation Act" license in India. The Private Security Agencies Regulation Act, 2005 (PSARA) is enacted by the Indian government to regulate and govern private security agencies operating in the country. This PSARA license is mandatory for any person or organization engaged in providing security services.
After the enactment of the PSARA (Act), it is required for a security agency to have PSARA license from a concerned State Controlling Authority before commencing the business. The application for the license to start a private security agency is made before the competent authority. The PSARA License can be issued to operate in one or more districts of the particular state or for the entire State.
What Is The Eligibility Criteria For PSARA License?
The specified eligibility criteria that required to be fulfilled for obtaining PSARA license. The following eligibilities under the PSARA Act, 2005 are:
Eligibility Criteria for Companies:
As per the Private Security Agencies Act, 2005, any company who wants to get the PSARA License need to register themselves as:
- Private Limited Company
- Limited Liability Partnership (LLP)
- One Person Company (OPC)
- Sole Proprietorship
- Partnership Firm
Eligibility Criteria for Director/Officer
Following Criteria must be followed:
- The applicant has to be a resident of India.
- The applicant has to be financially stable to afford the cost of operations.
- Must not have any criminal records.
Eligibility Criteria for Becoming Private Security Guard
For becoming a security guard and to get appointed by the private security agencies must have following:
- The applicant has to be a citizen of India.
- The applicant age has to be more than 18 and less than 65 years in age.
- The applicant requires to go through Security training.
- The applicant must never have been terminated from government service.
What do you understand about the Private Security Agency?
Private Security Agency (PSA) means any person or body of persons other than a Government Agency, who are engaged in the business of providing private security services. Private Security Agency Services provides the services of both armed and unarmed security guards for the protection. The agency helps in security to the world by providing services like patrol services, bodyguard, parking security etc. All PSAs are registered and regulated under Private Security Regulation Act, 2005.
The Private Security Agencies provide security services and also provide training to security guards. However, Section 4 of the Act states that the person will carry on or commence the business only if he holds a license issued under PSARA act to have private security agency.
Grant of PSARA License
An application for grant of PSARA license to the private security agency can be made to the Controlling Authority
- The applicant requires to submit an affidavit with the details as per the provisions contained in section 6. It also ensures the availability of the training for its private security guards and supervisors as mentioned under sub-section (2) of section 9. The conditions given under section 11 must also be checked that no cases are registered with police or pending in a court of law in regards to an applicant.
- Every application made must be accompanied by a fee of—
- Rs 5000, in case of the agency is operating in one district of a State;
- Rs 10000, in case the Agency is operating in more than one but up to five districts of that State
- Rs 25000 in case it is operating in the whole State.
- On receiving an application the Controlling Authority can inquire about the necessary requirements following to obtain a no-objection certificate (NOC) from the concerned police authority of the area. The Controlling Authority after satisfying will order in writing, either grant a license or refuse the same within a period of sixty days from the date of receiving of an application with the prescribed fee.
- A license granted under this section—
- It will be valid for a period of five years unless it is canceled under sub-section (1) of section 13
- It requires to be renewed from time to time after the expiry of five years, for a further period of five years on payment of prescribed fee
Documents Required For Having PSARA License
The documents required can vary from one state to another. The common documents required for having the PSARA license are as below:
- Certificate of Incorporation of Company
- Signed MOA (Memorandum of Understanding)
- Identity proofs of the Directors and employees
- Address proof of the Registered Office
- Affidavit as per Section 7 (2) of PSARA, 2005
- Logo for the Private security agency.
- PAN details of the promoters.
- Registration from ESI (Employees States Insurance)
- Id proofs of Security guard
- Affidavit of the security training.
- Documents of the PF (Provident Fund).
- Copy of ITR (Income Tax Return) of each Director.
- Character certificate of all the employees.
In the end, a duly filled application stating is submitted to the controlling Authority of that particular state.
Procedure for Grant of PSARA License
Following is the procedure to obtain the PSARA License:
- Step 1: The Controlling Authority, after receiving a report from the authorized officer on the PSARA application received under sub-rule (1) of rule 3, has the right to grant a license to the private security agency in Form VI. It is necessary that the Authority must complete all the formalities and satisfy the applicant. The area of operation must be checked before the license has been granted.
- Step 2: The Controlling Authority either by itself or through its officers is required to verify the training, skills imparted to the private security guards and also to supervisors of any private security agency. The Authority has also to review regarding the continuation of a license of those security agencies, which may not have adhered with the conditions of ensuring the required training.
- Step 3: The Controlling Authority can make such inquiries as it considers necessary and after that they can obtain a no-objection certificate from the concerned police authority. The Authority requires an order in writing, for grant or refusal to grant of license within a period of sixty days from the date of receipt of application and the fees.
- Step 4: In case the Controlling Authority does not agree with the no-objection certificate received from the concerned police authority, then he has to record the reasons for his disagreement. Further the matter is sent before the Government and then the decision is made as per the Government.
- Step 5: In case the Controlling Authority decides to grant a license, it must be granted in Form VI. The license has the validity for a period of 5 years unless it is canceled by the Controlling Authority.
- Step 6: The Controlling Authority must not refuse to grant the license unless an applicant has been given a reasonable opportunity of being heard. All the grounds on which license is refused must be mentioned in the order.
PSARA License Renewal
Following is the procedure for renewal of the PSARA License:
- An application for PSARA license renewal can be made before the Controlling Authority within forty-five days before the date of expiry of validity of license. It is made in the prescribed form and shall be accompanied by the requisite fee with all the other documents required as per sections 6, 7, and 11 of the Act.
- The Controlling Authority will then pass an order on an application for PSARA license renewal within thirty days from the date of receipt of application complete in all respects.
- On receipt of an application the Controlling Authority will make necessary inquiries and then by order in writing, renew the license or can refuse to renew.
Penaltyfor Not Having Valid PSARA License
Any person who does not have a valid License under PSARA will be Punishable with Imprisonment for a term of 1 year, or with fine that may extend upto 25,000 Rupees, or with both. All the private Security agencies require to obtain a license under PSARA 2005 to operate the business all over India. Private Security Agency License is important for all running Private security Agencies.
PSARA License Cancellation and Suspension
Any PSARA License cannot be canceled or suspended unless these conditions are followed:
- The license granted under this Act can be canceled or suspended. However the holder of a PSARA license has been given the reasonable opportunity of being heard where he can show cause why his license is canceled or suspended.
- The opportunity of showing cause and also of being heard must not be given in case of an enquiry held against the holder of the license in contravention to any grounds as per section 13(1) of the Act or under any of the conditions of the license granted to him.
Appeals made on Suspension and Cancellation Of PSARA License
Any person who is aggrieved by an order of the suspension of license under sub-section (2) of section 13, or cancellation of license under sub-section (1) of the section 13 has the two remedies which are:
- He can make an appeal against such an order to the Home Secretary of the respective state govt. within a period of sixty days from the date when the order of cancellation is passed.
- Appeal can also be admitted after the expiry of the period of 60 days if the applicant satisfies the state govt. with a reasonable ground of delay.
Note: Every appeal under sub-section (1) of Section 14 of the Act must be made in preferred Form- VII.
Disqualification of PSARA License
The application can get rejected under the following circumstances-
- If the government feels that it is not fit for the betterment of the general public
- The person forming the company must not be convicted with the crime whose punishment is of more than of two years
- If the applicant has the links with the organization which is banned by the government On the grounds of misconduct
- Association or firm if not registered in India or has a shareholder, partner or director is not a citizen of India.
Contact Startupfino Experts for Assistance
Nowadays, the growing tendency of hiring security guards from private sources has led to the formation of a large number of private security agencies. We at Startupfino help these private security agencies in meeting the security requirements and give assistance in obtaining PSARA licenses for their smooth functioning. Our services are:
- One-Stop PSARA Licensing: Startupfino experts provide complete assistance in obtaining a PSARA license for your security business in a few clicks.
- Assistance in the Documentation Process: With the help of the team at Startupfino you can simplify your PSARA license documentation procedure. We help you with all the compliances related to PSARA documentation.
Post License Compliance: Startupfino professionals also provide post-license compliance to ease your PSARA license process.
